10 Business Tips For A Less Taxing Filing Season

Preparation, organization and forethought will ease small business challenges at Tax Time

 

Tax preparation

Tax filing can be daunting for any small business but it doesn’t have to be. During my tenure at the IRS I’ve recommended the following guide to assist small businesses in the necessary preparation. These steps are intended as a guide to capture pertinent items and find resources for support and information. Let’s begin with step one:

1. Gather and organize your 2012 records and any documents you’ll need when filing your taxes. These are your receipts, canceled checks and other documents that support all income or deductions you are claiming on your return.

2. Be on the lookout for 2012 information returns W-2s, 1099s and 1098s as they will be coming soon and you will need these to file your tax return.

3. If you have a question you should use the Interactive Tax Assistant available on the IRS website to find answers to your tax questions about credits, deductions, general filing questions and more.

4. Use Free File available exclusively at www.irs.gov and let it do the hard work for you with brand-name tax software or online Fillable Forms ). If you made $57,000 or less, you can qualify to use free tax software offered through a private-public partnership with manufacturers.?If your income is more than $57,000 or are comfortable preparing your own tax return, you can use the Free File Fillable Forms above.

5. IRS e-file is the safe, easy and most common way to file a tax return. Last year, 79 percent of taxpayers (106 million people) used IRS e-file. Tax preparers are now required to use e-file. According to the IRS, 98 percent of the refunds from electronic filers are issued by direct deposit within 14 days, if there are no problems, and in some instances in as few as 10 days.

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